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Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing

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Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,053,000 Y Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows Per Undergarment Total $1.96 $2,063,880 0:47 494,910 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses 0.98 1.031.940 1.41 1.484.730 0.38 400.140 Totats 55.20 $5.475.600 The US Army has approached ean Fiber and expressed an interestingurchasing 249.700Y-Go undergarments for soldiers in extremely warm cimates. The Army would pay the unit cost for direct materiais direct labor and variable manufacturing overhead costs. In addition they has used to phean addition 5101 perundergarment to cover all other costs and provide a profit Presentiy Kean Fiber is operativa Scoach and does not have any other potential buyers for Your Riaan Fiber accepts the Army sofferta cursa SEDERGESTEE to this order didysis of the Rean Hiber. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses es. (450) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ Variable costs: Direct materials Direct labor Variable overhead Total variable costs Net Income S $

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